By Connor Hart
Wabtec inked a deal to purchase Evident's Inspection technologies division for $1.78 billion, adding advanced automated inspection capabilities to its portfolio.
The provider of equipment for rail and other industries on Tuesday said the transaction positions the company for accelerated and profitable growth. It is expected to double the size of its digital intelligence unit's total addressable market to $16 billion from $8 billion.
The acquisition, expected to be finalized in the first half of 2025, will enhance the company's ability to deliver innovative solutions by allowing it to better leverage its software-development capabilities, it said.
Wabtec, whose full name is Westinghouse Air Brake Technologies, said it expects the deal to be slightly accretive to adjusted per-share earnings in its first year. It projected the acquisition will provide a high single-digit revenue growth outlook, as well as be accretive to adjusted earnings before interest and tax margins and return on invested capital over time.
Headquartered near Boston, Evident's technologies division is expected to post about $433 million in revenue in 2024, as well as earnings before interest, tax, depreciation and amortization of about $112 million. The business, with four engineering and production facilities in North America and Japan and more than 1,300 employees, will add what Wabtec called a stable and predictable revenue base.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 14, 2025 06:39 ET (11:39 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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